Property sell-off drags VN-Index lower despite broad-based gains

Property sell-off drags VN-Index lower despite broad-based gains

The benchmark lost 0.9 per cent on Monday as heavyweight property stocks tumbled, outweighing gains in banking, energy and materials shares

VN-Index close 0.9 per cent lower on Monday as real estate sell-off masks broader market strength. — Photo nguoiduatin.vn

Việt Nam's benchmark stock index opened the new week in the negative zone as heavyweight property shares extended losses despite gains across most sectors.

The VN-Index on the Hochiminh Stock Exchange (HoSE) dropped nearly 17 points, or 0.9 per cent, to close at 1,854.97. It closed Friday up 0.47 per cent.

Market breadth remained positive, with 413 stocks advancing against 298 decliners.

The VN30 basket, which tracks the top 30 shares by market value and liquidity, also outperformed the broader market, with 21 gainers and nine losers.

Liquidity improved from the previous session.

A total of nearly 600 million shares worth VNĐ17.4 trillion (US$662 million) changed hands on the HoSE, including both matched orders and negotiated deals, up 12 per cent in volume and 8 per cent in value compared to Friday’s figures.  

Sector performance was broadly positive despite the benchmark's decline. Eight of the 11 industry indices tracked by Vietstock ended higher, led by energy, which gained 1.17 per cent, followed by financials (1.15 per cent), industrials (0.9 per cent) and materials (0.77 per cent).

Property stocks were the biggest drag on the market, falling 3.73 per cent on average.

The trio – Vingroup JSC (VIC), Vinhomes JSC (VHM), Vinhomes Retail JSC (VRE) – lost by 4.7 per cent, 3.7 per cent and 2.7 per cent, respectively.

Banking stocks dominated the gainers, with lenders accounting for eight of the 10 biggest positive contributors to the VN-Index.

LienVietPostBank (LPB) was the biggest gainer with a growth of 3.2 per cent, followed by BIDV (BID), Military Bank (MBB), VPBank (VPB), Techcombank (TCB), Vietcombank (VCB), Vietinbank (CTG) and Saigon Treasure Bank (STB) with an increase of around 1 per cent each.

On the Hanoi Stock Exchange, the HNX-Index inched up 0.05 per cent to 317.99. The northern bourse’s index decreased 0.5 per cent on Friday.

Liquidity also grew with nearly 59 million shares worth VNĐ977 billion being traded, both up 28 per cent compared to Friday’s levels.

Analysts at Bao Viet Securities (BVSC) said the market remained range-bound, with low liquidity indicating that investors stayed cautious following the recent rally.

They noted that large-cap stocks helped keep the VN-Index above its 50-day moving average despite continued sector divergence.

BVSC expects the benchmark to remain in a short-term consolidation phase after its recent rebound, with the index likely to trade within a narrow range before making another attempt to test the key resistance level around 1,900 points.

Foreign investors remained net sellers, offloading a net VNĐ787.5 billion on HoSE, led by sales of Vinhomes JSC (VHM), Vingroup JSC (VIC), FPT Corporation (FPT) and Military Commercial Joint Stock Bank (MBB), while posting net purchases of VNĐ11.5 billion on HNX, mainly in PetroVietnam Technical Services Corporation (PVS), TNG Investment and Trading JSC (TNG), IDICO Corporation (IDC), and Bao Viet Securities JSC (BVS). 

Bizhub